HOMEOWNERS INSURANCE POLICY
Have You Outgrown
Your Homeowners
Insurance Policy?
appraised value. Otherwise, the insurance
company will only pay their maximum set
limit, which is usually considerably less.
BY: CORINA HILL,
ATLAS INSURANCE AGENCY
T
he only thing constant in life is
change. Marriage, children, a
new house, a new job, and even
retirement are all common life
changes that can impact your
insurance coverage and needs. That renters
insurance policy you had in college will
no longer be applicable when you buy your
first home, nor will your first homeowners
policy be adequate to cover you in a second,
larger home. To make sure you have not
outgrown your insurance coverage and
that it suits your current needs, it’s best to
review your policies annually with your
agent. Here are five tips to help you get
started:
1. HAVE YOU ACQUIRED ANY NEW
VALUABLES?
Your standard homeowners policy only
provides small sub-limits for valuables such
as jewelry, art, and electronics. The policy
does not provide replacement cost on your
valuables, but some insurance carriers will
allow you to schedule your items for the
8
2. DID YOUR TEENAGER START
DRIVING OR HAVE YOU BECOME A NEW
PARENT?
Many people don’t realize that when they
become parents, they are responsible for
their child’s negligence. It’s a good idea,
therefore, to obtain an umbrella policy
that provides excess liability coverage
beyond your standard homeowners and
auto policies. An umbrella policy provides
excess liability limits starting at $1 million.
Pricing typically starts at about $150 a year.
3. HAVE YOU DONE EXTENSIVE
RENOVATIONS TO YOUR HOME?
Renovating your home is common these
days, but major upgrades may leave you
underinsured if you have not updated your
policy in accordance with your home’s
improvements. It is advisable to contact
your agent when you complete renovations
to discuss increasing your limits.
4. HAVE YOU PURCHASED ANY
EXPENSIVE NEW “TOYS”?
We are not talking about inexpensive
trinkets for the kids but rather lavish gifts
you may buy for yourself, such as a boat or
motorcycle. Having these types of assets
under ownership creates many new types
of exposures that must be covered by
insurance.
5. HAVE YOU PURCHASED A MORE
EXPENSIVE HOME THAN YOUR
ORIGINAL PURCHASE?
Homes with a replacement value of $1
million or higher may need to be insured
with private specialty carriers as opposed
to the standard carriers that serve the mass
market. Without the careful scrutiny of an
expert, you may find yourself overinsured
against minor threats and underinsured
against major ones.
It doesn’t take long to check over your
policies. Resolve now to get in touch with
your agent to review your current coverage.
You don’t want to discover at the time of
a terrible loss that you’ve outgrown your
insurances. +
Corina has over 11 years of experience
in the insurance industry, specializing
in personal lines coverage such as
homeowners and auto insurance. She also
recently obtained her CPCU designation
in 2017 which is considered the most
prestigious designation in the insurance
industry.